Item 4BM E M O R A N D U M
June 12, 2023
To: Shana Yelverton, City Manager
From: Sharen Jackson, Chief Financial Officer
Subject: Approve Revised City Sponsorship Policy
Action
Requested: Staff is seeking Council approval of revisions to the City Sponsorship
Policy as well as Council guidance of a % finder’s fee and maximum
dollar amount for the finder’s fee.
Background
Information: Sponsorships are an effective method to boost visibility and
enhance public sponsor recognition. Sponsorships for events and
community programs have been a successful tool for the city in
offsetting costs.
On June 6, 2017, City Council approved the existing City
Sponsorship Policy. Presented at this time are revisions to the
Policy for your consideration. Proposed changes to the Policy
include.
•City Council approval would be required for all Naming
Rights opportunities.
•City Manager would have the authority to approve all
sponsorships above $50,000.
•The Department Directors would have the authority to
approve sponsorships from $10,001 - $49,999.
•The Managers of the events or programs would have the
authority to approve sponsorships up to $10,000.
•Full payment would be required at the time of agreement
unless otherwise specified.
•Definitions added for clarification.
•Finder’s fee percentage____
•Maximum dollar amount for finder’s fee____
Financial
Considerations: Revenues generated by sponsorships would be deposited into the
city’s coffers and used for the designated purposes.
Item 4B
Strategic Link: Quality Development, Partnerships, and Volunteerism,
Performance Management and Service Delivery
Citizen Input/
Board Review: City council consideration for adoption – June 20, 2023.
Legal Review: City Attorney has reviewed the policy.
Alternatives: Approve, revise, or deny the revised Policy.
Supporting
Documents: Supporting documents include the following items:
Proposed revised City Sponsorship Policy
Staff
Recommendation: Clarification and approval of the revised City Sponsorship Policy
City of Southlake
Policies and Procedures
Policy: Sponsorship Policy
Source: City Council
Category: City-wide
I. Purpose
The purpose of the policy is to provide general guidelines for developing and managing
sponsorships and naming rights for city facilities, events, programs, and parks.
II. Policy Statement
The City of Southlake’s (“City”) policy is to actively pursue sponsorships from individuals,
foundations, corporations, nonprofit organizations, service clubs, and other entities to
build, enhance and sustain community facilities, programs, services, and events. All such
sponsorships shall comply with the guidelines established by this policy. The City Council,
at its discretion, may grant variances to this policy.
In reciprocation for the sponsorship, it is the policy of the City of Southlake to provide
sponsors with appropriate acknowledgment of their contributions.
III. Authority
The City will maintain authority, management, operation, and control over the
planning and execution of sponsorship naming and activities. Refer to Section IX
for approval authority.
IV. Authorized Approvers – the positions or entities within the City with authority for
approving sponsorship proposals, as outlined in Section IX of this policy.
Director – Department director, Police Chief, Fire Chief, or their designee.
In-Kind Sponsorship - A type of sponsorship in which an individual, foundation,
corporation, nonprofit organization, service club, or other entity provides a good or
service in exchange for sponsorship recognition of a city event, program, or
service. There is no monetary exchange within this sponsorship agreement.
Sponsors agree to provide a good or service in exchange for sponsorship
recognition.
Manager – The employee assigned by the Director to run the program or event.
Naming Rights Sponsorship - A type of sponsorship in which an individual,
foundation, corporation, nonprofit organization, service club, or other entity
purchases the exclusive right to name an asset or venue (i.e., athletic field, sports
complex, parks and recreation amenity, or community facility) for a fixed period.
Paid Sponsorship - A type of sponsorship in which an individual, foundation,
corporation, nonprofit organization, service club, or other entity provides cash in
support of a city event, program, or service.
Title Sponsorship - A type of sponsorship in which an individual, foundation,
corporation, nonprofit organization, service club, or other entity purchases the
exclusive right to be named as the Title Sponsor of an event, program, or service.
V. City Responsibility
The city is responsible for marketing sponsorship opportunities and negotiating and
administering all sponsorships and agreements. The Authorized Approvers reviewing
sponsorship proposals must ensure that all relevant bylaws and policies are adhered to,
that appropriate consultation and approval authorities are respected, and, where
applicable, that insurance, indemnification, ethical scans, business good standing status,
and permits have been obtained. The City shall maintain a log of all sponsorship
contributions, per the guidelines established by the City’s Chief Financial Officer and enter
a written agreement with each Sponsor.
VI. Guidelines for Establishing Sponsorship Relationships
All proposed sponsorship relationships will be considered on an individual, case-
by-case basis, and should be consistent with the City’s Mission, Values, and/or
Strategic Plan.
A. The following criterion forms the basis of the City’s consideration when establishing
sponsorship relationships:
1. Is the mission of the sponsor organization consistent with the City’s Mission,
Values, and/or Strategic Plan?
2. Are the potential Sponsor's products, services, and marketing goals compatible
with the City’s Mission, Values, policies, and ordinances?
3. Does the sponsorship enhance the City’s community facilities, community
programs, community events, community services, and/or the parks and
recreation system?
4. Are the tangible and intangible benefits balanced for both the Sponsor and the
City?
5. Are the sponsorship conditions consistent with City standards, visual integrity,
and user expectations?
6. Does the sponsorship commit the City to additional responsibilities, legal
liability, or operations and maintenance costs?
7. Does the sponsorship create a conflict of interest for the city?
8. Does the sponsorship in any way invoke future consideration, influence, or
perceive to influence the day-to-day operations of the City?
9. Is the sponsorship opportunity appropriate to the target audience?
10. Will the results of the sponsorship relationship deliver a positive and desirable
image for the city?
B. Additional considerations when establishing sponsorship relationships include:
1. Agreements shall not limit the City’s ability to seek other sponsors.
2. The sponsorship cannot be made conditional on the City’s performance.
3. There shall be no actual or implied obligation to purchase the product or services
of the Sponsor.
4. The sponsorship must not result in, or be perceived to result in any competitive
advantage, benefit, or preferential treatment for the Sponsor outside of the
sponsorship agreement.
5. The evaluation of the potential Sponsor shall include, but not be limited to the
individual’s or the organization’s: values and principles; products and services
offered; record of environmental stewardship and social responsibility; rationale for
its interest in partnering with the City; expectations; and ability, timeliness, and
readiness to agree.
6. Ineligible sponsorships include but are not limited to any potential Sponsor whose
primary products or services are substantially derived from the sale of alcohol,
drugs, tobacco, gambling, firearms, or sexually explicit or inappropriate materials.
7. The City will not accept sponsorship from individuals, foundations, corporations,
nonprofit organizations, service clubs, or other entities whose reputation is averse
to the City’s values. The city will not allow advertising, either directly or through
third-party arrangements, which presents demeaning or derogatory portrayals of
individuals or groups or contain anything, which, in light of generally prevailing
community standards, is likely to cause deep or widespread offense. The City may,
at its discretion, bring any proposals to the City Council for their approval even if
they do not meet the guidelines of this Policy. The City Council may also consider
any proposal or direct staff to pursue any sponsorship opportunities that do not
strictly adhere to this Policy.
8. The City retains the right to accept or reject any sponsorship submitted for
approval. If the application is rejected, a notification of refusal will be sent.
VII. Types of Sponsorships
Sponsorships are negotiated and tailored to each event, program, facility, or service. A
hierarchy of benefits may be associated with the different types of sponsorships, often
providing more branding and visibility with higher levels of support. Each type of
sponsorship will have specific levels detailing the value of the sponsorship.
A. Naming Rights Sponsorship
Usually naming rights are considered in a commercial context, in which the naming
right is sold or exchanged for significant cash and/or other considerations under a
long-term arrangement. This sponsorship shall be documented in a written agreement
signed by the interested parties and will include a specified end date for the contractual
obligations.
The following specific guidelines shall be applied to a Naming Rights Sponsorship
agreement for city-owned, city-operated assets, such as an athletic field, athletic
complex, park, recreation amenity, playground, pavilion, gymnasium, or community
facility.
1. The proposed Naming Rights Sponsor must support the image, values, and
corporate objectives of the City of Southlake and the Southlake community.
2. The City shall not relinquish to the Sponsor any aspect of the City’s right to
manage and control the asset or facility.
3. Signage, branding, publicity, and advertising shall conform to all applicable City
policies, ordinances, and plans.
4. The name should describe the purpose of the facility.
5. The name should consider historical and community significance.
6. The Sponsor shall have ongoing responsibilities to adhere to the standards set
forth herein and the agreement shall have termination provisions in the event
of the failure to comply.
7. To minimize confusion, names that are similar to existing parks, properties, or
facilities within the City shall not be used.
All Naming Rights proposal submissions are subject to City Council review and
approval.
B. Events, Programs, and Services Sponsorships
Title Sponsorship, Paid Sponsorship, or In-Kind Sponsorship Agreements for City
events, programs, and services shall include one or more of the following:
1. Recognition as a Sponsor for a specific event, program, or service.
2. Appropriate mention in promotional material as Sponsor for the event,
program, or service.
3. Appropriate Sponsor signage/display at the event or program location for a
period not to exceed the length of the event, or as determined by City staff.
4. Appropriate recognition as a Sponsor on the event/program website.
5. Category/product exclusivity for the event, program, or service (Title
Sponsorship only).
6. Other possible benefits as negotiated.
These sponsorships shall be documented in a written agreement signed by the
interested parties.
VIII. Establishing Sponsorship Relationships
Sponsorship relationships are established through initiation by the City informally
or formally via a Request for Sponsors process, or through initiation by a potential
sponsor.
Interested Sponsors are encouraged to contact the city at any time to discuss
potential sponsorship opportunities. A completed sponsorship application must be
submitted to the City and shall include an acknowledgment of reading,
understanding, and agreeing with the City’s Sponsorship Policy, along with a letter
detailing the specifics of the proposed sponsorship.
Sponsorship relationships for a specific park, facility, project, program, service, or
event may be initiated by organizations that the city partners with via Community
Services Agreements or Facilities Utilization Agreements. However, sponsorship
applications must be turned over to the city for processing and negotiating once
initiated. At no time shall the organization speak on behalf of or negotiate on behalf
of the City. A ____% finder’s fee may be given to the organization as compensation
for their part in initiating the relationship, with a maximum fee of $_____.
IX. Approvals
A. The City Council will approve all Naming Rights Sponsorships.
B. The City Manager has the authority to approve all sponsorships valued at $50,000
or above.
C. The Director (of the managing department) has the authority to approve
sponsorships valued between $10,001- $49,999.
D. The Manager responsible for issuing sponsorship opportunities has the authority
to approve sponsorships valued up to $10,000 related to community events;
community programs; festivals, and the Parks and Recreation system.
A Letter of Understanding will be sent to the successful applicant setting out the
agreed terms, and when the process of fulfilling the sponsorship agreement will begin.
X. Sponsorship Payment
The city requires full payment at the time of the sponsorship agreement unless otherwise
specified in the agreement.
XI. Revenue Allocation
All revenues received from Naming Rights Sponsorships will be utilized in adherence to
the agreement.
All revenue received from events, programs, and services sponsorships will utilize funds
collected for events, programs, and service sponsorships to offset City events, programs,
and services expenses as they occur or utilize funds to enhance events, programs, and
services.
XII. Recognition of Sponsorship
Sponsorship recognition messages may identify the Sponsor, but should not promote or
endorse the individual, foundation, corporation, nonprofit organization, service club, or its
products or services. Statements shall not advocate, contain price information or an
indication of associated savings or value, request a response, or contain comparative or
qualitative descriptions of products, services, or organizations. Ordinarily, only the
following content will be deemed appropriate:
A. Legally recognized name of the Sponsor.
B. Sponsor’s organizational logo and slogan if it identifies rather than promotes the
organization or its products and services.
C. Sponsor’s product or service line, described in brief, generic, objective terms -
generally, only one product or service line may be identified.
D. Brief contact information for the sponsor’s organization, such as phone number,
address, and/or website, and must be stated in a manner that avoids the implication
of urging the reader to action.
The city will not make any statements that directly or indirectly advocate or endorse a
Sponsor’s organization, products, or services.
No materials or communications, including, but not limited to print, video, internet
broadcast, social media, or display items developed to promote or communicate the
sponsorship using the City of Southlake’s name, marks, or logo may be issued without
written approval from the City of Southlake.
XIII. Termination of Sponsorships
A. The City of Southlake reserves the right to accept or reject any sponsorship proposal
submitted for approval and, while every intention is to accept and fulfill all sponsorship
agreements, the City reserves the right to terminate the agreement at any time if, in
the City’s sole discretion, a continuation of the sponsorship is determined not to be in
the best interests of the City. If the City elects to terminate the agreement, any funds,
unused materials or services, or other compensation received by the City before such
termination will be refunded by the City unless such termination is due to a material
breach of the agreement by the Sponsor, in which case the City may retain all or a
part of the compensation if the City determines that such is necessary to compensate
the City for any losses incurred by the City due to such material breach.
B. The Sponsor reserves the right to withdraw the sponsorship proposal at any time
during the approval process.
C. The Sponsor may also withdraw from the agreement within ten (10) days of execution
of the agreement. However, no refund will be given on any funds received by the City
before receipt of the notification of withdrawal.
Approval Date: September 18, 2012 Approved By: City Council
1. Revision Date June 6, 2017 Approved By: City Council
2. Revision Date June 6, 2023